India announces $250m credit line to Nepal

India on Friday announced a $250 million credit line to Nepal for the development of the Himalayan nation's infrastructure, and the two countries signed a bilateral investment protection and promotion agreement.
The two agreements were signed after a meeting between the visiting Nepalese Prime Minister Baburam Bhattrai and his Indian counterpart Manmohan Singh and his Nepali counterpart Baburam Bhattarai.
The two countries also reached a broad political understanding under which India expressed its firm support to the peace and constitutional process underway in Nepal.
The Bilateral Investment Promotion and Protection Agreement, which commits one country to providing compensation to commercial entities, whose country of origin is the other, assumes significance in the wake of attacks on Indian joint venture companies in Nepal.